How does Snapchat make money?

Snapchat makes nearly all of its money through advertising. Snapchat, or Snap Inc., calls itself a camera company. It enables users to connect with family and friends via exchanging photos, which are called snaps, or videos, which are called stories.

Snapchat generates all of its revenue via advertisers that pay the company to promote its products or services on its app. This is a common way for free apps to make money in the modern landscape. For a long time, companies such as Facebook (now Meta) were valued at extremely high figures without generating any actual income.